Term Life Insurance Articles

Term Life Insurance: When & Why?

2010-03-10

The best time to insure is today. Waiting for tomorrow will only increase the complexities and decrease the benefits. Insurance premium rates are determined according to your age when you get insured. The later you insure the more you pay. If you have dependants and mortgages then it’s always advisable to get a life insurance as soon as possible.

Pros & Cons of Life Insurance

You need to be sure that you are getting exactly what you need. Ask yourself a couple of questions before choosing a policy. The first question should obviously be the extent of coverage you require. By coverage, we generally mean the money we want to leave behind for our family or loved ones. The higher the coverage the more expensive the policy gets. The policy you choose will help repay debts and/or mortgages after your death, protecting your partner and family from financial crisis in your absence. Zeroing in on the policy that suits you the most can be a Herculean task.

While applying for a life insurance policy, it is always advisable to disclose the whole truth about your health no matter how negative it is. For example if you are a heavy smoker or drinker you should not hide the fact simply to secure a cheaper premium for a greater coverage. It may so happen that after your death the facts you hid may come back to haunt your loved ones. They will be deprived of  the benefits you wanted them to have in case the insurer comes to know that you had withheld such vital information.

You should also beware of fraudulent insurance agents who may use your credentials without your consent to and make a fortune for themselves. Recently Jeffery Michael Engler, a registered insurance representative in Marana, Arizona, was barred by FINRA for fraudulently collecting more than $16,000 in commissions.

Term vs. Whole Life Policies

Whole life insurance policies seem to go on for ever without any conspicuous benefits to the policyholder in his normal tenure of life. On the contrary with term life insurance one can reap short term benefits and choose the term depending on his/her individual need( 5, 10, 15yrs, etc.) It is affordable and convenient as well. For example Arizona term life insurance provides greater flexibility and options for people who are looking forward to financially securing their families in case of their untimely demise.